Alberta’s Minister of Finance Robin Campbell made a special appearance at a lunch event in Chestermere on Feb. 18 at the Lakeside Golf Course, to discuss the upcoming budget announcement with invited guests.
Campbell said while there is no doubt Alberta remains the “best place in Canada” to live, the Province is facing some challenges as a result of the dramatic decline in oil prices.
“We can’t forget the other sectors that we have in this province – forestry, manufacturing, agriculture, tourism,” he said.
“We will continue to grow as a province, and as a place of opportunity, there’s nowhere else in Canada you’d rather be.”
Currently, according to Campbell, oil revenue makes up 20 per cent of the Province’s operating budget. Since oil prices have declined by approximately 15 per cent, he said, it creates a $7 billion deficit in the upcoming budget.
“This shortfall is equivalent to the entire education budget for the province of Alberta, or one third of all public sector wages – including doctors and nurses,” he said.
“We are looking at a long-term plan to change the fiscal structure of how we budget for Alberta, going forward. We have to stop managing our finances based on the price of oil.”
According to Campbell, the budget survey (available at alberta.ca/Budget.cfm) has brought in nearly 30,000 responses so far. One of the key points Campbell has seen mentioned by Albertans is that they are “tired of the ups and downs.”
“We want the government to have stable funding and stable programs so that when times are good, we can put money into our savings, and when times are bad, we don’t have to cut programming,” said Campbell.
“We will be looking at that with our budget, in our ten-year program.”
Another resounding point brought forward by Albertans who have taken the survey, Campbell said, is that residents feel they should be paying something for their health care. Since Alberta’s high-quality health care makes up approximately 40 per cent of the budget, according to Campbell, a health care premium may be a consideration.
“We may reinstate health care statements, because I think people need to know how much the system costs us,” Campbell said.
“But I’m not prepared to ask for more money from the Province until I’m comfortable that as a government, we’ve reduced our spending enough that the taxpayer is getting the best bang for their dollar.”
Campbell added that the Government of Alberta is also leading by example – according to Campbell, the Premier, Cabinet, and all MLAs are taking a voluntary five per cent wage reduction, as part of their “commitment to exercising financial discipline in these challenging times.”
Taxes have also been discussed, according to Campbell. He explained that the Province’s current flat tax is progressive – the more money earned by an individual, the more they will pay in taxes. Currently, 65 per cent of taxes in Alberta are paid by the top 25 per cent wage earners, and the bottom 25 per cent earners pay only 2.9 per cent of the taxes, according to Campbell.
“I’m conscious of that, and any tax we may bring in, I will make sure it doesn’t have an impact on those lower income families,” Campbell said.
While Campbell made it clear that there will be definite changes ahead for Alberta, he said according to discussions he’s had with economists and bankers, the Province has the fiscal ability to move forward with these changes gradually.
“We will be able to do this over a period of time and not just do it in one shot, which would put too much strain on our public services,” he said.
“You’re going to see a plan that will take us two or three years, and I do believe that under our new Premier’s guidance, with this plan we will be in great shape to meet our challenges.”
